Speaking to the TD Ameritrade Network, Bauer noted that Bitcoin’s price is stuck in the current range for a long time giving whales an opportunity to accumulate. He suggested that unless Bitcoin breaks the $42,000 barrier towards the $36,000 mark, whales will still have the upper hand. According to Bauer, the drop in Bitcoin presented an opportunity for inventors with risky assets to accumulate, taking advantage of the 24/7 availability of cryptocurrency markets. He notes that crypto markets presented the perfect investment opportunity after the stock market sold off on Sunday going into Monday when Bitcoin plunged by almost 10%.
Awaiting the Fed’s next direction
Furthermore, Bauer indicated that, like the stock market, Bitcoin might be awaiting the next announcement by the Federal Reserve on interest rates. He suggests that most investors might be on the sidelines until the Fed’s next direction before deciding to buy Bitcoin. Bauer notes that investors will opt to await the Fed’s next direction, although the correlation between cryptocurrencies, interest rates, and the dollar remains unclear. His sentiments come after Bitcoin’s volatility accelerated on Monday, considering that the asset was building a new momentum to another record price. Bitcoin traded above the $50,000 mark early this month, which was considered a critical physiological point. [coinbase]
